Garuda Indonesia Plans Gradual Ticket Price Adjustments

April 8, 2026 10:48 AM . 3 min read

The Indonesia National Air Carriers Association (INACA) has welcomed the government’s move through the Indonesian Ministry of Transportation to issue Transportation Ministerial Decree No. KM 1041 of 2026 concerning additional charges (fuel surcharge) due to fuel price fluctuations for scheduled international commercial economy-class air passenger fares. (Pictures source : Pexels/ Brett Sayles)

JAKARTA, Jakartaweekly.com – Flag carrier Garuda Indonesia plans to make adjustments in response to evolving global aviation industry dynamics, shaped by geopolitical uncertainty and fluctuations in fuel prices, including Aviation Turbine Fuel (Avtur). One of the measures includes a proportional adjustment to ticket fares.

President Director Glenny Kairupan said the airline will carry out fare adjustments in a measured and proportional manner, while upholding prudence, transparency, and compliance with regulatory requirements.

“Evaluations will be conducted periodically in line with the continued volatility in jet fuel prices,” he said in a statement on Wednesday, April 8, 2026.

He added that the fare adjustment is a follow-up to government policies concerning the revision of the additional charge component (fuel surcharge) for domestic economy-class passengers, as well as the planned value-added tax (VAT) stimulus, under which the 11 percent VAT will be borne by the government.

According to Glenny, the policy represents a strategic step to maintain a balance between the airline’s operational sustainability and the affordability of air transport services, while also supporting the stability of the national aviation ecosystem.

Amid ongoing industry pressures, Garuda Indonesia is also preparing mitigation measures by reviewing the optimization of flight frequencies and schedules across several routes, as part of efforts to maintain capacity productivity and operational sustainability.

He said that the company will continue to closely monitor geopolitical developments and global aviation dynamics, ensuring that any adjustments are made in an adaptive manner. The move is aimed at preserving a balance between business sustainability and service accessibility for all segments of society.

As the national flag carrier, Garuda Indonesia reaffirmed its commitment to providing safe and reliable air travel services, while meeting the mobility needs of the public and supporting national connectivity.

INACA Appreciate the Government’s Policy

Meanwhile, The Indonesia National Air Carriers Association (INACA) has welcomed the government’s policy response to the sharp rise in jet fuel prices, driven by ongoing geopolitical tensions in the Middle East.

The measures were announced by Coordinating Minister for Economic Affairs Airlangga Hartarto during a press conference on Wednesday. The policy package includes setting the fuel surcharge at 38 percent for both jet and non-jet aircraft, a government-borne value-added tax (VAT) of 11 percent, and the elimination of import duties on spare parts.

The provisions will be effective for two months from the date of implementation, while discussions on increasing the upper fare limit (TBA) have been postponed.

“We appreciate the government’s policy, as it is not easy to respond to the significant increase in jet fuel prices due to the geopolitical crisis in the Middle East,” said INACA Chairman Denon Prawiraatmadja.

Denon noted that the policy strikes a balance between the needs of airlines and the public, highlighting government support through the temporary removal of the 11 percent VAT burden and the reduction of spare parts import duties to zero.

He expressed hope that the policy would be swiftly implemented, helping airlines maintain operational performance, as well as ensuring flight safety and passenger comfort.

The policy is also expected to support broader efforts to sustain national air connectivity, benefiting both the public and the government amid ongoing pressures in the aviation sector.